5 Working With the FMCC Account Configuration

This chapter provides overviews of automatic accounting instructions (AAIs) for FMCC and how the system performs calculation on various financial metrics, and discusses how to associate account dimensions to AAIs.

This chapter contains the following topics:

  • Understanding Automatic Accounting Instructions for FMCC

  • Associating Account Dimensions to AAIs

5.1 Understanding Automatic Accounting Instructions for FMCC

The JD Edwards EnterpriseOne Financial Management and Compliance Console (FMCC) provides customers with a set of blended analytic components. The blend covers high-level analytics in addition to daily metrics, which highlight actions to be taken by management. The different metric groupings are categorized by typical job roles within an organization. A consistent, comprehensive, and timely view of the performance metrics saves both time and money. JD Edwards EnterpriseOne FMCC provides metrics that are pertinent to a variety of roles within organizations, including customer, supplier, operations, and financial managers. The metrics use existing data within JD Edwards EnterpriseOne to provide visibility to the information and enable analysis and evaluation of the information.

JD Edwards EnterpriseOne FMCC uses the financial AAIs to determine account ranges for financial ratios. The system stores AAIs in the Automatic Accounting Instruction Master table (F0012).

You must define AAIs for these accounts in your chart of accounts:

  • Beginning assets

  • Beginning accounts receivable

  • Ending accounts receivable

  • Beginning inventory

  • Ending inventory

  • Ending current asset

  • Beginning fixed asset

  • Ending fixed asset

  • Ending assets

  • Beginning liability

  • Ending current liability

  • Beginning long term debt

  • Ending long term debt

  • Ending liabilities

  • Beginning revenue

  • Ending revenue

  • Beginning cost of goods sold

  • Ending direct expenses

  • Ending cost of goods sold

  • Beginning interest

  • Ending interest

  • Beginning other income

  • Ending other income

  • Beginning other expenses

  • Ending other expenses

  • Beginning tax expense

  • Ending tax expense

  • Ending profit and loss accounts

The algorithm used in the FMCC functionality requires that financial AAIs be set up in a particular manner. To set up the financial AAIs for the FMCC functionality, you must set up AAIs in the required order and then associate account dimensions to the AAIs.


Note:

You do not need the template file ref_chap.fm to create a reference-type chapter or appendix. All elements and formats you need to create reference-type documentation are in the chapter.fm or the appendix.fm template.

Steps to Set Up AAIs in the Required Order

Use the Automatic Accounting Instructions program (P0012) to set up Company 00000 AAIs to enable you to use the FMCC functionality. Similar to the GLG AAIs, you set up these AAIs only for company 00000.

When you set up the AAIs, you:

  1. Identify the 28 object accounts that map to the 28 AAIs based on your business setup.

    For example, suppose that your company has a structure of accounts as shown in Table 1.

    Table 1:

    Object Amount Description
    0001 Beginning assets
    2400 Beginning accounts receivable
    2599 Ending accounts receivable
    2000 Beginning inventory
    2399 Ending inventory
    2999 Ending current asset
    0010 Beginning fixed asset
    1699 Ending fixed asset
    2999 Ending assets
    3000 Beginning liability
    4799 Ending current liability
    3000 Beginning long term debt
    4399 Ending long term debt
    4999 Ending liabilities
    5000 Beginning revenue
    5199 Ending revenue
    5200 Beginning cost of goods sold
    5399 Ending direct expenses
    5399 Ending cost of goods sold
    7500 Beginning interest
    7599 Ending interest
    5400 Beginning other income
    5999 Ending other income
    6000 Beginning other expenses
    7699 Ending other expenses
    7700 Beginning tax expense
    7899 Ending tax expense
    8000 Ending Profit And Loss Accounts

  2. Arrange the object accounts in ascending order.

    After you identify the accounts, you rearrange the object accounts and associated AAI Descriptions in object account ascending order, as shown in the example in Table 2:

    Table 2:

    Object Amount Description
    0001 Beginning assets
    0010 Beginning fixed asset
    1699 Ending fixed asset
    2000 Beginning inventory
    2399 Ending inventory
    2400 Beginning accounts receivable
    2599 Ending accounts receivable
    2999 Ending current asset
    2999 Ending assets
    3000 Beginning liability
    3000 Beginning long term debt
    4399 Ending long term debt
    4799 Ending current liability
    4999 Ending liabilities
    5000 Beginning revenue
    5199 Ending revenue
    5200 Beginning cost of goods sold
    5399 Ending direct expenses
    5399 Ending cost of goods sold
    5400 Beginning other income
    5999 Ending other income
    6000 Beginning other expenses
    7500 Beginning interest
    7599 Ending interest
    7699 Ending other expenses
    7700 Beginning tax expense
    7899 Ending tax expense
    8000 Ending Profit And Loss Accounts


    Note:

    There are 14 balance sheet AAIs and 14 income statement AAIs. You must ensure that the first 14 AAIs map to balance sheet accounts and the last 14 AAIs map to the income statement accounts.

  3. For all account types, increment the object account for all ending ranges by one.

    Increment the object account value for all ending ranges by one. See the complete list of ending ranges in table 3A.

    Table 3A:

    Object Account Description
    1699 Ending fixed asset
    2399 Ending inventory
    2599 Ending accounts receivable
    2999 Ending current asset
    2399 Ending inventory
    4399 Ending long term debt
    4799 Ending current liability
    4999 Ending liabilities
    5199 Ending revenue
    5399 Ending direct expenses
    5399 Ending cost of goods sold
    5999 Ending other income
    7599 Ending interest
    7699 Ending other expenses
    7899 Ending tax expense
    8000 Ending Profit And Loss Accounts

    This step is necessary to ensure that the ending account within each AAI range is included. This example explains this concept:

    The beginning inventory object accounts range starts from account 2000 and the ending inventory range has object account 2399 mapped to it. This means that all accounts starting from object account 2000 through object account 2399 are used for inventory. However, when the system performs calculations to consolidate accounts for a range, it considers the accounts from the beginning until the ending account range. So, for inventory in this example, the system considers all accounts from 2000 through the one before 2399, which is 2398. Therefore, the system will exclude accounts for 2399 that actually belong to inventory. To ensure that these accounts are not left out, increment the account number of the ending range by 1. By increasing the range by 1, the account number for ending inventory becomes 2400. Therefore, the system includes all accounts from 2000 through 2400 minus 1, which is 2399.

    In Table 2, you will observe the same account number for an ending accounts range and the subsequent beginning accounts range. For example, by increasing the ending accounts range by 1 in the above example, the account 3000 maps to ending current assets, ending assets, beginning liabilities, and beginning long term debt. The system provides for this by considering the respective account in the last range from the list of ranges arranged in ascending order. For example, the system considers the account 3000 as beginning long term debt.

    Table 3B displays the account ranges given in Table 2, with the ending account ranges increased by one.

    Table 3B:

    Object Amount Description
    0001 Beginning assets
    0010 Beginning fixed asset
    1700 Ending fixed asset
    2000 Beginning inventory
    2400 Ending inventory
    2400 Beginning accounts receivable
    2600 Ending accounts receivable
    3000 Ending current asset
    3000 Ending assets
    3000 Beginning liability
    3000 Beginning long term debt
    4400 Ending long term debt
    4800 Ending current liability
    5000 Ending liabilities
    5000 Beginning revenue
    5200 Ending revenue
    5200 Beginning cost of goods sold
    5400 Ending direct expenses
    5400 Ending cost of goods sold
    5400 Beginning other income
    6000 Ending other income
    6000 Beginning other expenses
    7500 Beginning interest
    7600 Ending interest
    7700 Ending other expenses
    7700 Beginning tax expense
    7900 Ending tax expense
    8001 Ending profit and loss accounts

  4. Assign AAIs F01 to F28, in order, to each of the Object Account/Description rows in object order.

    After you increase the object account for all ending ranges by one, assign AAIs F01 to F28, in order, to each of the Object Account/Description rows in object order.

    Table 4 shows the assignment of the AAIs to the accounts. You enter these details in the F0012 table.

    Table 4:

    AAI Object Account Description
    F01 0001 Beginning assets
    F02 0010 Beginning fixed asset
    F03 1700 Ending fixed asset
    F04 2000 Beginning inventory
    F05 2400 Ending inventory
    F06 2400 Beginning accounts receivable
    F07 2600 Ending accounts receivable
    F08 3000 Ending current asset
    F09 3000 Ending assets
    F10 3000 Beginning liability
    F11 3000 Beginning long term debt
    F12 4400 Ending long term debt
    F13 4800 Ending current liability
    F14 5000 Ending liabilities
    F15 5000 Beginning revenue
    F16 5200 Ending revenue
    F17 5200 Beginning cost of goods sold
    F18 5400 Ending direct expenses
    F19 5400 Ending cost of goods sold
    F20 5400 Beginning other income
    F21 6000 Ending other income
    F22 6000 Beginning other expenses
    F23 7500 Beginning interest
    F24 7600 Ending interest
    F25 7700 Ending other expenses
    F26 7700 Beginning tax expense
    F27 7900 Ending tax expense
    F28 8001 Ending profit and loss accounts


    Note:

    There should not be any gap between F14 and F15. The system will not process any object accounts that fall within this gap because F14 marks the end of balance sheet accounts and F15 marks the beginning of income statement accounts.

  5. Use the Automatic Accounting Instructions program (P0012) in the JD Edwards EnterpriseOne software to set up the Company 00000 AAIs defined in steps 1 through 4 and concluded in Table 4.

5.2 Associating Account Dimensions to AAIs

This section provides an overview of how to associate account dimensions to AAIs, lists prerequisites, and discusses how to associate account dimensions to AAIs.


Note:

Before you proceed for associating account dimensions to AAIs, you must have set up AAIs based on your business setup.

5.2.1 Understanding How to Associate Account Dimensions to AAIs

Account dimensions are account ranges that the system uses to calculate financial ratios. You use the Financial Ratios Account Dimension Configuration program (P80D021) to associate account dimensions to the AAIs based on your business needs. The system stores these details in the F80D021 table, and uses the values when you run the dashboard to display the financial metrics.

The Financial Ratios Account Dimension Configuration program has two tabs, Balance Sheet Account Ranges and Income Statement Account Ranges. You use the Balance Sheet Account Ranges tab to enter account dimensions for balance sheet accounts that range from F01 through F14 and the Income Statement Account Ranges tab to enter the account ranges for income statement accounts that range from F15 through F28.

All financial metrics require these account dimensions to calculate financial ratios:

  • NW: Net worth

  • IN: Net income after taxes

  • TA: Total assets

  • CL: Current liabilities

  • LD: Long term debt

  • SA: Sales revenue

  • CG: Cost of goods sold (Cogs)

  • IT: Interest expense

  • TX: Tax expense

  • CA: Current assets

  • IV: Inventory

  • OE: Operating expense

  • FA: Fixed assets

  • TL: Total liabilities

When you use the Financial Ratios Account Dimension Configuration program to enter values in the F80D021 table, you can enter only a certain set of values in each column as described in Table 5.

Table 5:

Column Value
Financial Ratios Range Code 1 (FRNG1) You can use this column to enter only:

  • IN

  • NW
Financial Ratios Range Code 2 (FRNG2) You can use this column to enter only:

  • CG

  • CL

  • IT

  • LD

  • SA

  • TA

  • TX
Financial Ratios Range Code 3 (FRNG3) You can use this column to enter only:

  • CA

  • FA

  • OE

  • TL
Financial Ratios Range Code 4 (FRNG4) You can use this column to enter only IV.

Based on these values, you align account dimensions to AAIs as discussed in the steps below.

When you associate AAIs with account dimensions, you:

  1. Associate account dimensions to AAIs that span over a single AAI.

  2. Associate account dimensions to AAIs that span over multiple AAIs.

  3. Realign account dimensions to the AAIs.

  4. Include or exclude AAIs from an account dimension.

You need to identify the account dimensions by function to map them to the appropriate AAIs.

The example in Table 6 illustrates the association of all account dimensions to the AAIs based on the values allowed in the respective column as specified in Table 5:

Table 6:

FAAI OBJ FRNG1 FRNG2 FRNG3 FRNG4 FAAI Description
F01 0001         Beginning assets
    NW TA CA    
F02 0010         Beginning fixed asset
    NW TA FA    
F03 1700         Ending fixed asset
    NW TA      
F04 2000         Beginning inventory
    NW TA CA IV  
F05 2400         Ending inventory
    NW        
F06 2400         Beginning accounts receivable
    NW TA CA    
F07 2600         Ending accounts receivable
    NW TA CA    
F08 3000         Ending current asset
    NW        
F09 3000         Ending assets
    NW        
F10 3000         Beginning liability
    NW   TL    
F11 3000         Beginning long term debt
    NW LD TL    
F12 4400         Ending long term debt
    NW CL TL    
F13 4800         Ending current liability
    NW   TL    
F14 5000         Ending liabilities
             
F15 5000         Beginning revenue
    IN SA      
F16 5200         Ending revenue
    IN        
F17 5200         Beginning cost of goods sold
    IN CG OE    
F18 5400         Ending direct expenses
    IN        
F19 5400         Ending cost of goods sold
    IN        
F20 5400         Beginning other income
    IN        
F21 6000         Ending other income
    IN        
F22 6000         Beginning other expenses
    IN        
F23 7500         Beginning interest
    IN IT      
F24 7600         Ending interest
    IN        
F25 7700         Ending other expenses
    IN        
F26 7700         Beginning tax expense
    IN TX      
F27 7900         Ending tax expense
    IN        
F28 8001         Ending profit and loss accounts


Note:

In Table 6, account dimensions are marked between two ranges because they cover the accounts ranging from the starting of the account range until the starting of the subsequent range. For example, the tax expense (TX) ranges from F26 to F27 is from account number 7700 to 7899. It does not include the starting account of the next range. That is the reason it is existing between F26 and F27.

The example in Table 7 illustrates the realigning of account dimensions to the AAI that defines the beginning of a given range from the example illustrated in Table 6.

Table 7:

FAAI OBJ FRNG1 FRNG2 FRNG3 FRNG4 FAAI Description
F01 0001 NW TA CA   Beginning assets
F02 0010 NW TA FA   Beginning fixed asset
F03 1700 NW TA     Ending fixed asset
F04 2000 NW TA CA IV Beginning inventory
F05 2400 NW       Ending inventory
F06 2400 NW TA CA   Beginning accounts receivable
F07 2600 NW TA CA   Ending accounts receivable
F08 3000 NW       Ending current asset
F09 3000 NW       Ending assets
F10 3000 NW   TL   Beginning liability
F11 3000 NW LD TL   Beginning long term debt
F12 4400 NW CL TL   Ending long term debt
F13 4800 NW   TL   Ending current liability
F14 5000         Ending liabilities
F15 5000 IN SA     Beginning revenue
F16 5200 IN       Ending revenue
F17 5200 IN CG OE   Beginning cost of goods sold
F18 5400 IN       Ending direct expenses
F19 5400 IN       Ending cost of goods sold
F20 5400 IN       Beginning other income
F21 6000 IN       Ending other income
F22 6000 IN       Beginning other expenses
F23 7500 IN IT     Beginning interest
F24 7600 IN       Ending interest
F25 7700 IN       Ending other expenses
F26 7700 IN TX     Beginning tax expense
F27 7900 IN       Ending tax expense
F28 8001         Ending profit and loss accounts

The system is designed to associate all accounts within a range to the AAI that defines the beginning of that range. For example, the accounts within the range from F01 to F02 are associated to F01, the accounts ranging from F02 to F03 are associated to F02, and so on.

In Table 7, the TX account range is marked only at F26 because F26 marks the beginning of the tax expenses account range and represents the entire range of tax accounts from 7700 to 7899. The sum of amounts of records with F26 AAI comprises all records starting from object account 7700 through 7899. This means that the system associates the object accounts within a range to the AAI associated to the beginning of the range.

The system gives you flexibility to include or exclude accounts from an account dimension.

The example in Table 8 illustrates how you can include or exclude accounts from an account dimension.

Table 8:

FAAI OBJ FRNG1 FRNG2 FRNG3 FRNG4 FAAI Description
F01 0001 NW TA CA   Beginning assets
F02 0010 NW TA FA   Beginning fixed assets
F03 1700 NW TA     Ending fixed assets

In the example in Table 8, accounts ranging from 0001 to 0009 are current assets. If you have asset transactions for these accounts and you do not want to consider them as current assets, you can disassociate CA from F01. By doing this, the system excludes amounts in this account range while calculating current asset amounts.

Table 9 illustrates an example with the exclusion of CA for accounts ranging from 0001 to 0009.

Table 9:

FAAI OBJ FRNG1 FRNG2 FRNG3 FRNG4 FAAI Description
F01 0001 NW TA     Beginning assets
F02 0010 NW TA FA   Beginning fixed assets
F03 1700 NW TA     Ending fixed assets


Note:

Based on your preference, you can also use the same approach to associate account dimensions for AAIs.

The Financial Ratios Account Dimensions table (F80D021) has four columns that contain the account dimensions to AAIs associations. Table 10 illustrates the values that would be included for the data in Table 7.

FAAI FRNG1 FRNG2 FRNG3 FRNG4
F01 NW TA CA  
F02 NW TA FA  
F03 NW TA    
F04 NW TA CA IV
F05 NW      
F06 NW TA CA  
F07 NW TA CA  
F08 NW      
F09 NW      
F10 NW   TL  
F11 NW LD TL  
F12 NW CL TL  
F13 NW   TL  
F14        
F15 IN SA    
F16 IN      
F17 IN CG OE  
F18 IN      
F19 IN      
F20 IN      
F21 IN      
F22 IN      
F23 IN IT    
F24 IN      
F25 IN      
F26 IN TX    
F27 IN      
F28        


Note:

The system is designed to accept only the set of account dimensions in the respective columns as represented in Table 9. Table 5 specifies the allowed set of values for each account dimension.

5.2.2 Form Used to AAIs with Account Dimensions

Form Name FormID Navigation Usage
Financial Ratios Account Dimension Configuration W80D021A Select Configuration (G80D41), Financial Ratios Account Dimension Configuration program. Associate account dimensions to AAIs.

5.2.3 Associating AAIs with Account Dimensions

Access the Financial Ratios Account Dimension Configuration form.

Figure 5-1 Financial Ratios Account Dimension Configuration form, Balance Sheet Account Ranges tab

Description of Figure 5-1 follows
Description of "Figure 5-1 Financial Ratios Account Dimension Configuration form, Balance Sheet Account Ranges tab"

Figure 5-2 Financial Ratios Account Dimension Configuration form, Income Statement Account Ranges tab

Description of Figure 5-2 follows
Description of "Figure 5-2 Financial Ratios Account Dimension Configuration form, Income Statement Account Ranges tab"

Financial RatiosRange Code 1

Enter a value from UDC table 00/R1 that specifies the account dimension for an AAI. Values are:

IN: Net income after taxes

NW: Net worth

You must use only these values in this field. The system stores this information in the F80D021 table.

Financial RatiosRange Code 2

Enter a value from UDC table 00/R2 that specifies the account dimension for an AAI. Values are:

CG: Cost of goods sold

CL: Current liabilities

IT: Interest expense

LD: Long term debt

SA: Sales revenue

TA: Total assets

TX: Tax expenseYou must use only these values in this field. The system stores this information in the F80D021 table.

Financial RatiosRange Code 3

Enter a value from UDC table 00/R3 that specifies the account dimension for an AAI. Values are:

CA: Current assets

FA: Fixed Assets

OE: Operating expense

TL: Total liabilitiesYou must use only these values in this field. The system stores this information in the F80D021 table.

Financial RatiosRange Code 4

Enter a value from UDC table 00/R4 that specifies the account dimension for an AAI. The only value allowed in this field is IV for inventory.

You must use only these values in this field. The system stores this information in the F80D021 table.